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  1. Overview: Tanzania
  2. Global PEO and payroll
  3. Global HR Compliance
  4. Work permit for hiring expats via PEO
  5. Expand without a company set up
  6. Contractor vs. employee: which is better?
  7. Global Payroll Calculator
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Global Employer of Record in Tanzania

What Is a Global Employer of Record?

When expanding globally, businesses often face the challenge of navigating complex employment laws, tax regulations, and administrative burdens when expanding into new markets. A Global Employer of Record (Global EOR) emerges as a strategic solution, alleviating these complexities and enabling seamless international workforce management.

Unlike a traditional Employer of Record (EOR), which operates within a single country, a Global EOR extends its reach across multiple jurisdictions, offering a unified platform for managing international employees. This centralised approach eliminates the need for companies to establish separate legal entities in each country, streamlining the process of hiring, employing, and managing staff globally.

Global EORs serve as the legal employer for international employees, assuming all responsibilities associated with employment, including payroll, tax withholding, benefits administration, and compliance with local labour laws. This comprehensive support allows companies to focus on their core business objectives without getting bogged down in the intricacies of foreign employment regulations.

The benefits of partnering with a Global EOR extend beyond compliance and administrative relief. Global EORs provide access to a vast network of experienced professionals with in-depth knowledge of local employment practices, ensuring that companies adhere to the latest regulatory requirements and avoid costly legal pitfalls.

Moreover, Global EORs offer a cost-effective alternative to establishing local subsidiaries or business units. By centralising employment functions, companies can avoid the upfront investment and ongoing operational expenses associated with establishing a legal presence in each country.

For companies seeking to test new markets or adopt agile operational strategies, Global EORs prove invaluable. Their flexibility allows companies to quickly deploy and adjust their workforce based on market conditions and business needs, minimising risk and preserving existing corporate structures.

Global Employment Solutions: How Can Help You Expand to Tanzania

As the global employer of record, our experience and expertise can help you get started quickly and compliantly in Tanzania. Businesses expanding globally often face challenges when compliantly employing a workforce in foreign countries. In most cases, legal compliance requires establishing a legal in-country business entity, a complex, costly, and time-consuming process that many employers are not ready to undertake.

To help your organization legally onboard and payroll a workforce in Tanzania, Acumen International offers a global employment solution via our Global Employer of Record (EOR) designed to help you circumvent the legalities of direct hiring, eliminating the need for you to establish a legal entity in Tanzania to conduct business there.

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9 Global Employment Challenges to Consider in Tanzania

If you’re considering expanding your operations globally, you’ll want to consider all the details that go into that decision. That includes everything from choosing the most cost-effective country and the right entity type to preparing for business challenges across borders. Choosing a location that works with your overall strategy and offers lower taxes could be one way to help improve profitability.

As you prepare to expand internationally, it’s crucial to understand how each factor impacts the overall success of your business. Here are some global expansion challenges:

  1. Every country in the world has its own set of unique laws for businesses.
  2. The legislative and regulatory landscape is ever-evolving. Keeping track of changes is cumbersome.
  3. Global HR Compliance challenges
  4. Need to understand and keep track of ever-evolving local labour laws and tax regulations across multiple jurisdictions
  5. Need to understand the local labour market
  6. Need to understand local business practices pertinent to employment
  7. Need to adhere to the company’s global employment policies
  8. Need to understand local competition and benchmark against standard business practices
  9. Working with different languages, time zones, customs, and cultures.

No matter which countries you expand to or what type of operation you open, you will always have to deal with some significant issues.

Global expansion decisions come with a lot of moving parts. The decision to expand internationally can significantly impact your business, so it’s essential to make sure you handle it correctly.

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Global Employment Solutions in Tanzania

All-In-One Global Employment Solution

Express Global Employment provides comprehensive services for building a global team, handling all aspects from hiring to compliance. Here’s what a Global Employer of Record can do:

  • Global Mobility Support: Simplifies onboarding and immigration, enabling quick onboarding and engagement of international talent.
  • Effortless Onboarding: Streamlines global employee onboarding to enhance productivity and speed up results.
  • Global Payroll & Benefits Management: Manages international payroll and benefits, ensuring compliance and competitive compensation.
  • Borderless Expansion Without Local Entities: Facilitates workforce expansion in 190 countries, removing the need for local business entities.
  • Hire Internationally, Operate Everywhere: Offers support for scaling operations and seizing international opportunities swiftly.
  • Risk-Free Market Navigation: Provides expert guidance for secure expansion, managing permanent establishment, employee misclassification risks and compliance challenges in new markets.

1. Recruitment

2. Global Mobility

3. Checks

4. Onboarding

5. Payroll Administration

6. Working Time & PTO Processing

7. Benefits Administration

8. Tax Administration & Reporting

Offboarding

Talent skilled in highly specialised areas Employee Work Visa and Work Permit sponsorship Health checks Employment Agreement drafting In-country registration with statutory bodies Working hours Mandatory Benefits Tax Reporting frequency and requirements; Employment agreement termination:
Executive search Dependent Visa Criminal record checks Compliant worker onboarding on your behalf Day-to-day payroll management Overtime Health insurance Employer taxes & contributions Dismissal – by the employer
Contingency workforce Visa extension Background checks Account setup in the payroll and HR system​ Monthly pay slips or other pay frequency Public holidays Workers’ compensation Employee taxes & contributions Resignation – by the employee
Application for a sponsor license for a foreign national Education checks Employee data entry and records maintenance Accruals Annual leave Unemployment insurance Withholding tax Termination by mutual agreement
Relocation assistance Managing probation periods Allowances Parental leave Voluntary Benefits Local tax payments and reporting to local authorities Notice period handling
13th and 14th salary Sick leave Share plans for executives End of financial year reporting Final settlement & severance payments
Additional leave Bonuses & Equipment provision De-registration with statutory bodies
Expenses reimbursement & business trip processing
Health insurance, dental treatment

How Does a Global Employer of Record Work?

If you’re looking to do business in a foreign country, it’s essential to ensure you comply with local payroll laws. This is where an Employer of Record (EOR) can help. An Employer of Record (EOR) can act on your behalf to manage local employee-related matters such as payroll, tax deductions, and onboarding of new hires.

An EOR can provide a registered entity for running a local, compliant payroll, managing payroll taxes, benefits, compensations, deductions, social insurance, and employee information. An Employer of Record can guide you on the host country’s required notice periods, termination rules, and severance pays, saving thousands of dollars in lawsuits while freeing up HR from repetitive tasks.

With a global EOR partner, you can ensure that your business operates smoothly and legally in your new country of choice.

When You Should Use an Employer of Record

Organizations looking to expand internationally often face many challenges. One of the biggest challenges is finding a way to do so quickly and efficiently without sacrificing quality. In that case, a global EOR provider can be beneficial. A global Employer of Record provider specialises in helping organisations with their international expansion efforts. They have the knowledge and expertise necessary to help your organisation grow quickly and effectively. Here are some common situations where organisations like yours can turn to an EOR provider for assistance.

1. Using Global EORs to Explore and Evaluate International Markets

Global EORs are a great way to test the readiness of an international market for your products or services. Hiring workers in target countries allows you to get a feel for the market without committing time and resources to set up a local entity. This is a great way to gauge interest and potential demand before making a significant investment.

2. Avoid  Independent Contractor Non-compliance and Misclassification Issues

If you plan to grow your business by hiring international contractors, you could be at risk of violating employment and tax laws. An EOR can enhance compliance by hiring contractors on your behalf and following all local in-country labour requirements.

3. Quickly Enter New Markets without Overseas Entity Set-Up with GEO

Organizations looking to expand their business into new markets may find that establishing a new entity is the best course of action. However, setting up a new entity can be lengthy and complex. With an EOR (Employer of Record), businesses can have workers operational in the new country within weeks while your organization does the work of setting up the new entity in parallel.

4. A Global EOR Can Support Your M&A Processes

When an organisation acquires a workforce in a new country, the contracted workforce will often be expected to operate in a different jurisdiction with different local laws and tax and compliance regulations. In the business world, where time and cost are critical factors, it is essential to have a reliable and experienced EOR partner to facilitate and expedite your business acquisitions.

Global EOR (Employer of Record) Services: Save Up to 75-80% of Employee Management Cost

Average Cost & Time Our Solution *
Time to Market 10+ weeks 72 hours
Legal Advisors Fees $ 10 000 + ………….
Official Employment & Benefits $ 20 000 + ………….
Incorporation & Liquidation Costs $ 11 000 + ………….
Bank Account Setup $ 2 000 + ………….
Maintenance costs and in-house staff to manage the foreign entity, payroll set up, and administration. $ 25 000+ ………….
The approximate total cost of new market entry** $ 74 000 + $ 15 000

* Per one Employee
** Costs vary from country to country

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Employer of Record – The Best Option for Expanding Your Business to Tanzania

1. Faster hiring a candidate in Tanzania

With the global economy shifting more and more towards technology, companies are looking for ways to keep up. One such solution is the EOR model, which allows companies to outsource work to distant locations without any overhead or bureaucracy. This is especially helpful for companies that need to fill positions quickly in multiple locations, as it eliminates the hassle of setting up local entities.

The Global EOR model can be an excellent solution for businesses needing to find and hire talented workers regardless of location. This can be especially helpful for companies with limited internal resources or infrastructure, as it eliminates the need to create an entity in each location. Additionally, the EOR engagement complies with global regulations, making it an ideal solution for businesses of all types looking for faster and compliant employment in Tanzania. 

2. Test the Market with a Global EOR before Launching a Business in Tanzania.

If you’re looking for a way to tap into Tanzania‘s market, a global EOR might be the perfect solution. A global Employer of Record is an employee engagement where one company agrees to act as an employer for another company. This allows your company to test the waters without taking on all the associated risks and costs of establishing an entity in Tanzania. If things go well, the Employer of Record can arrange for its employees to work permanently from that location. So what are you waiting for? Start exploring this promising new market today!

The benefits of a Global Employer of Record (EOR) arrangement include:

  • Cost savings. There are no additional expenses associated with setting up an entity or hiring staff until you decide it’s worth the cost.
  • Increased flexibility. You can move quickly if necessary without dealing with lengthy lease agreements or other administrative matters that would slow down your growth plans.

3. Employer of Record: Avoid Expensive Fees and Long-Term Commitments

The Employer of Record offers a simple, low-cost solution for companies looking to expand their operations in a foreign country.

Companies can work with a local partner in their chosen country and utilize the services of an Employer of Record (EOR). This provides an alternative to setting up an entity or subsidiary, as it allows companies to sidestep the administrative and financial burdens involved in establishing a legal entity.

The EOR (Employer of Record) will be responsible for all tax obligations and regulatory compliance requirements on behalf of your company in Tanzania. The EOR engagement also allows you to avoid additional costs associated with hiring local staff and other expenses such as office space and equipment rentals.

Partnering with an Employer of Record allows you to retain complete control over your employees and business operations, benefit from substantial cost savings, and avoid non-compliance risk. 

4. Employer of Record: A Good Option To Getting Started in Tanzania

 Faster

An Employer of Record is an excellent choice for those looking to start working in Tanzania immediately. Using an Employer of Record, you can get started sooner than if you were waiting for your entity to become official in Tanzania. The Employer of Record will act as a legal employer of your workforce in Tanzania and handle payroll and benefits administration, tax filing, and all the necessary paperwork for your employees, making the employment process in Tanzania smoother and quicker.

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Spotlight on Tanzania

Tanzania is an East African country bordered by Kenya and Uganda to the north, Rwanda, Burundi, and the Democratic Republic of the Congo to the west, Zambia, Malawi, and Mozambique to the south, and the Indian Ocean to the east.

  • Capital: Dodoma.
  • Currency: Tanzanian shilling (TZS).
  • Population: 61,741,120.
  • Most developing industries: Tanzania has a vast natural resource wealth, with significant reserves of gold, diamond, iron, coal, nickel, tanzanite, uranium, tin, phosphates, gemstones, and natural gas. Tanzania’s main crops are tobacco, coffee, cashew nuts, tea, cloves, cotton and sisal plants. Due to its diverse climatic and geographic zones, Tanzania has one of the widest crop varieties in Africa. Livestock production, especially cattle and sheep, is another important component of the primary sector.
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